Alibaba founder Jack Ma to step down in 2019

Agencies
September 10, 2018

Beijing, Sept 10: Alibaba founder and billionaire Jack Ma announced on Monday he would step down as the Chinese e-commerce giant's executive chairman next year and named the company CEO as his successor.

Ma, 54, will hand over the keys of his company to 46-year-old Daniel Zhang in an unprecedented succession plan that will slowly take the focus off one of China's most recognisable corporate names over the next 12 months, Hong Kong-based South China Morning Post, which is owned by Alibaba, reported.

Zhang will be promoted to the executive chairman on September 10, 2019, while Ma remains a director on Alibaba's board and a permanent member of the Alibaba Partnership, according to a letter written by Ma to all staff including to the Post.

Ma said he will remain Alibaba's executive chairman during the year-long period to ensure a "smooth and successful" transition, and stay on as an Alibaba director until a shareholder' meeting in 2020.

"This transition demonstrates that Alibaba has stepped into the next level of corporate governance from a company that relies on individuals, to one built on systems of organisational excellence and a culture of consistent talent development," Ma said in his letter.

The succession plan being announced on his birthday on Monday came after confusing reports about Ma's retirement.

The New York Times, which interviewed him, reported on Saturday that Ma planned to use his 54h birthday to announce his retirement to devote his time to philanthropy focused on education.

The report of his retirement came as a surprise, especially in the Chinese government circles as the Post report said Ma was relinquishing as China's business environment had soured, with the government and state-owned enterprises increasingly playing more interventionist roles with companies.

The Post report was quickly denied by Alibaba whose spokesman told the Post on Saturday that Ma remains the company's executive chairman and will provide transition plans over a significant period of time.

"The Times story was taken out of context and factually wrong," the daily quoted the spokesman as saying.

Ma, who grew from an English teacher to China's top billionaires making Alibaba into USD 420 billion company, always took care to not ruffle feathers of the ruling Communist Party of China (CPC).

He took care not to project himself bigger than the CPC leadership though he has emerged as modern China's most revered corporate icon.

"Alibaba was never about Jack Ma, but Jack Ma will forever belong to Alibaba," Ma said in the letter.

The plan, announced on Ma's 54th birthday, took 10 years to put together. It owed its inception to Alibaba's formative years, long before the online marketplace forayed into cloud computing, cashless payments, artificial intelligence and Hollywood movies, the Post report said.

"This is merely the beginning of a succession strategy of creating a step ladder to groom the next generation of managers," Joseph P H Fan, co-director of the Institute of Economics and Finance at the Chinese University of Hong Kong said.

"Jack Ma's halo is too bright, and outshines whoever's under him, so he needs to fade out. But for a company of Alibaba's size, it's a process that will take 10 years to complete," he said.

Zhang was known to Alibaba employees as "Xiaoyaozi" (free and unfettered one), the name of a character from a Louis Cha wuxia novel, the Post report said.

Since Zhang, known as Zhang Yong in mainland China, was named chief executive in May 2015, "Alibaba has seen consistent and sustainable growth for 13 consecutive quarters.

"His analytical mind is unparalleled, he holds dear "our mission and vision, he embraces responsibility with passion, and he has the guts to innovate and test creative business models," Ma said.

"I've worked closely with Daniel since 2007 when he first joined us as chief financial officer of Taobao," said Joseph Tsai, Alibaba's executive vice-chairman who was the company's finance chief until 2013.

"On intellect and energy, I can barely keep up with him. But it's his thoughtfulness and humility that is most impressive as a leader," he said.

Zhang had previously served as Taobao's chief financial officer, president of Tmall.com and as Alibaba's chief operating officer before succeeding Jonathan Lu as chief executive.

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News Network
February 3,2020

Beijing, Feb 3: The first batch of patients arrived on Monday at a specialised hospital built in just 10 days as part of China's intensive efforts to fight a new virus.

Huoshenshan Hospital and a second facility with 1,500 beds that's due to open this week were built by construction crews who are working around the clock in Wuhan, the city in central China where the outbreak was first detected in December.

The Wuhan treatment centres mark the second time Chinese leaders have responded to a new disease by building specialised hospitals almost overnight. As severe acute respiratory syndrome, or SARS, spread in 2003, a facility in Beijing for patients with that viral disease was constructed in a week.

The first batch of patients arrived at the Huoshenshan Hospital at 10 am on Monday, according to state media. The reports gave no details of the patients' identities or conditions.

The ruling Communist Party's military wing, the People's Liberation Army, sent 1,400 doctors, nurses and other personnel to staff the Wuhan hospital, the official Xinhua News Agency said. The government said earlier some have experience fighting SARS and other outbreaks.

Authorities have cut most road, rail and air access to Wuhan and surrounding cities, isolating some 50 million people, in efforts to contain the viral outbreak that has sickened more than 17,000 and killed more than 360 people.

The Huoshenshan Hospital was built by a 7,000-member crew of carpenters, plumbers, electricians and other specialists, according to the Xinhua News Agency.               Photos in state media showed workers in winter clothing, safety helmets and the surgical-style masks worn by millions of Chinese in an attempt to avoid contracting the virus.

About half of the two-storey, 600,000-square-foot building is isolation wards, according to the government newspaper Yangtze Daily. It has 30 intensive care units.

Doctors can talk with outside experts over a video system that links them to Beijing's PLA General Hospital, according to the Yangtze Daily. It said the system was installed in less than 12 hours by a 20-member "commando team" from Wuhan Telecom Ltd.

The building has specialised ventilation systems and double-sided cabinets that connect patient rooms to hallways and allow hospital staff to deliver supplies without entering the rooms.

The hospital received a donation of "medical robots" from a Chinese company for use in delivering medicines and carrying test samples, according to the Shanghai newspaper The Paper.

In other cities, the government has designated hospitals to handle cases of the new virus.

In Beijing, the Xiaotangshan Hospital built in 2003 for SARS is being renovated by construction workers. The government has yet to say whether it might be used for patients with the new disease.

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News Network
January 24,2020

New Delhi, Jan 24: Under attack for doling out subsidies, Delhi Chief Minister Arvind Kejriwal on Friday said freebies in limited dose are good for the economy as they make more money available to the poor and boosts demand.

Opposition parties have been attacking the AAP-led Delhi government for giving "freebies" ahead of polls after it announced schemes like free bus rides for women and 200 units of free electricity.

"Freebies, in limited dose, are good for economy. It makes more money available to poor, hence boosts demand. However, it should be done in such limits so that no extra taxes have to be imposed and it does not lead to budget deficits," Kejriwal said in a tweet.

Slamming the BJP, Kejriwal said he is happy that the people of Delhi have forced the Saffron party to ask for votes on the basis of CCTVs, schools and unauthorised colonies.

Reacting to a tweet of the BJP Delhi in which Home Minister Amit Shah had asked how many schools have been constructed and cameras installed by the AAP government, Kejriwal said he is happy that Shah saw some CCTV cameras as earlier he had claimed that he could not find a single one.

"I am happy you saw some CCTV cameras. A few days back you said there was not a single camera. Take out some time we will show you our schools also. I am extremely happy that the people of Delhi have changed the politics by which the BJP has to ask for votes on CCTV, schools and raw colonies here," he said in a tweet.

Responding to Shah's allegation that he could not find WiFi in Delhi as promised by Kejriwal and that his battery drained out in the process, the Delhi chief minister said along with free WiFi they have also made arrangement for free charging points.

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Agencies
July 3,2020

The dollar's dominance will slowly melt away over the coming year on weakening global demand and a sombre U.S. economic outlook, according to a Reuters poll of currency forecasters whose views depend on there being no second coronavirus shock.

Despite fears a surge in new Covid-19 cases would delay economies reopening and stymie a tentative recovery, world stocks have rallied - with the S&P 500 finishing higher in June, marking its biggest quarterly percentage gain since the height of the technology boom in 1998.

Caught between bets in favour of riskier investments, weak U.S. economic prospects as well as an easing in the thirst for dollars after the Federal Reserve flooded markets with liquidity, the greenback fell nearly 1.0 per cent last month. It was its worst monthly performance since December.

While there was a dire prognosis from the top U.S. medical expert on the coronavirus' spread, the June 25-July 1 poll of over 70 analysts showed weak dollar projections as Fed Chair Jerome Powell on Monday reiterated the economic outlook for the world's largest economy was uncertain.

"The dollar rises in two instances: when you see risk off or when there is a situation where the U.S. is leading the global recovery, and we don't think that's going to be the case anytime soon," said Gavin Friend, senior FX strategist at NAB Group in London.

"The U.S. is playing fast and loose with the virus, and chronologically they're behind the rest of the world."

Currency speculators, who had built up trades against the dollar to the highest in two years during May, increased their out-of-favour dollar bets further last week, the latest positioning data showed.

About 80 per cent of analysts, 53 of 66, said the likely path for the dollar over the next six months was to trade around current levels, alternating between slight gains and losses in a range. That suggests the greenback may be at a crucial crossroad as more currency strategists have turned bearish.

But more than 90 per cent, or 63 of 68, said a second shock from the pandemic would push the dollar higher. Five said it would push the U.S. currency lower.

Much will also depend on debt servicing and repayments by Asian, European and other international borrowers in U.S. dollars.

While an early shortage of dollars in March from the pandemic's first shock pushed the Fed to open currency swap lines with major central banks, international funding strains have eased significantly since. In recent weeks, usage of the facility has reduced dramatically.

That trend is expected to continue over the next six months with major central banks' usage of swap lines to "stay around current levels", according to 32 of 46 analysts. While 13 predicted a sharp drop, only one respondent said use of them would "rise sharply".

The dollar index, which measures the greenback's strength against six other major currencies, has slipped over 5 per cent since touching a more than three-year high in March.

When asked which currencies would perform better against the dollar by end-December, a touch over half of 49 respondents said major developed market ones, with the remaining almost split between commodity-linked and emerging market currencies.

"The dollar is so overvalued, and has been overvalued for a long time, it's time now for it to come back down again, as we head towards the (U.S.) election," added NAB's Friend.

Over the last quarter, the euro has staged a 1.8 per cent comeback after falling by a similar margin during the first three months of the year. For the month of June, the euro was up 1.2 per cent against the dollar.

The single currency was now expected to gain about 2.5 per cent to trade at $1.15 in a year from around $1.12 on Wednesday, slightly stronger than $1.14 predicted last month. While those findings are similar to what analysts have been predicting for nearly two years, there was a clear shift in their outlook for the euro, with the range of forecasts showing higher highs and higher lows from last month.

"In comparison to even a month or two ago, the outlook in Europe has improved significantly," said Lee Hardman, currency strategist at MUFG.

"I think that makes the euro look relatively more attractive and cheap against the likes of the dollar. We're not arguing strongly for the euro to surge higher, we're just saying, after the weakness we have seen in recent years, there is the potential for that weakness to start to reverse."

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